Under the International Bank for Reconstruction and Development scheme, the World Bank offers low-interest loans to risky customers whose credit rating is often poor.

Question

Quizplus · Accepted Answer

Under the International Bank for Reconstruction and Development (IBRD) scheme, money is raised through bond sales in the international capital market. Borrowers pay what the bank calls a market rate of interest-the bank's cost of funds plus a margin for expenses. This "market" rate is lower than commercial banks' market rate. Under this scheme, the World Bank offers low-interest loans to risky customers whose credit rating is often poor, such as the governments of underdeveloped nations.

Under the International Bank for Reconstruction and Development Scheme, the World